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HRA Distributions Must Be Included in Calculating Overtime Pay

In a recent court ruling on a case involving the City of Sheboygan in Wisconsin, the judge ruled surprisingly that distributions from an HRA (Health Reimbursement Arrangement) need to be included in calculating the overtime rate of pay unless the distribution was made from an irrevocable trust.

If you currently have an HRA with National Insurance Services, you have nothing to worry about. Our HRAs have underlying irrevocable benefit trusts that provide interest earnings and hold the assets until they are needed to reimburse eligible medical expenses. If you have any questions about this ruling or HRAs, your Retirement Income Representative at 800.627.3660.

National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.

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Ken Zastrow

Ken Zastrow

Ken Zastrow enjoys establishing a strong rapport with his clients. He believes that education is key in helping them understand their benefit plans. Ken has a strong background in both active and post-employment benefit strategies. As Employee Benefits Consultant at National Insurance Services, Ken is responsible for the overall assessment and management of all an employer’s benefit plans including claim reconciliation, policy changes, renewals, and medical and dental analytics. He is also well versed in compliance, benefit integration, and early retiree benefits. Ken is a licensed health and life insurance agent, working with schools, cities, and counties in the Midwest Region.